Sold 1 Credit Spread on Royal Dutch Shell (AMS:RDSA) - Potential income return 1.11% in 15 days

On April 1, 2021, we sold 1 bull put credit spread on Royal Dutch Shell (AMS:RDSA) stock expiring on April 16, 2021. For this trade, we got a EUR 20 premium (before commissions).

Royal Dutch Shell PLC, commonly known as Shell, is a British-Dutch multinational oil and gas company headquartered in the Netherlands and incorporated in England. It is one of the oil and gas "supermajors" and the third-largest company in the world measured by 2018 revenues

These trades come as the #1 and #2 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 0.65% from our $2,800 monthly goal.  While in total we have reached already 0.65% this month so far. Awesome.

Here is our trade setup:

  • BOT  1  RDSA  APR 16 '21 - 16.5+ 15.5 Put Bull Spread    -0.20    EUR  

what can happen next:

If RDSA is trading above our strike price of EUR 16.5 at the expiry date (April 16, 2021) we keep the premium as options expire worthlessly. 

In case RDSA is trading below our strike price of EUR 16.5, we get assigned 100 shares at the strike price of EUR 16.5

Our potential income EUR 18.42, or 1.11% potential income in 15 days.

Our break-even price: EUR 16.32